Anthony Albanese
AFP

Russell Mineral Equipment (RME), a mining equipment company based in Queensland, has become the first company to receive taxpayer funding, as part of an Albanese government's election pledge.

The business has obtained AU$40 million from the National Reconstruction Fund (NRF), guaranteeing that it would continue to be owned by Australians, ABC reported.

Industry Minister Ed Husic said, "What we don't want to see is Australian firms leaving our shores because they don't get the support they need at the right times."

The NRF allocates the taxpayers funds to companies that have the potential to grow, thus ensuring the government receives a return on investment.

The fund, overseen by the National Reconstruction Fund Corporation (NRFC), was part of the center-left Labor Party's campaign promises ahead of the 2022 elections, and serves as Prime Minister Anthony Albanese's resolve to boost domestic manufacturing and fortify supply chains following COVID-19, Bloomberg reported.

Following an agreement between the government and the Greens, legislation was passed by the parliament in March 2023 to create the NRF.

Defending the delay in the launch of the NRF funds, Husic said that allocating taxpayer funds needed considerable thought and that it was not just about giving out awards.

"The big difference between what we are doing with the NRF and what the Coalition has done with grants is we are making decisions in the national interest," he said.

RME, which manufactures mill relining technologies, is based in Toowomba. These mill relining technologies are used in mining for minerals and metals.

Following the allocation of the funds, RME executive chairman John Russell said this would ensure the business "remains an Australian-owned and operated company based in Queensland."